SBI Mutual Fund has launched a 36-month close-ended debt-oriented hybrid fund called SBI Dual Advantage Fund – Series III. The NFO of the fund is currently open for subscription and will close on June 12, 2014.
The scheme aims to generate income by investing in a portfolio of fixed income securities. The scheme will also invest a small portion of up to 20% in equity and equity related securities in order to generate capital appreciation.
In a press release, the company said that the scheme will primarily focus on companies that have demonstrated characteristics such as market leadership, strong financials and quality management.
Through the press release, DP Singh, Executive Director and Chief Marketing Officer, Domestic Business, SBI Mutual Fund said ‘’In quest to invest hard-earned money, investors are often faced with an investing dilemma that forces them to choose between income and growth. SBI Mutual Fund understands this need and therefore has launched a unique fund, SBI Dual Advantage Fund - Series III. This fund gives investors an opportunity to grow by endeavouring to minimize credit risk & matching maturity reduces interest rate risk.’’
Rajeev Radhakrishnan, Head Debt, SBI Mutual Fund said, “A Hybrid scheme like SBI Dual Advantage Fund - Series III, endeavors to combine the benefits of different asset classes viz. Equity and Debt. The scheme endeavours to reduce the volatility of equity asset class and low return of debt asset class. It seeks to ensure a high accrual through investments in debt securities, while simultaneously seeking to ensure capital appreciation through investments in equity instruments.”
Benchmarked against CRISIL MIP Blended Fund Index, the scheme has a minimum application amount of Rs. 5000.
